All you can do with it on the iPod is cracking a key with data captured from another system (preferably linux with an atheros card) which is mostly a proof of concept since said computer will most likely crack the key faster.

search the forums for a program called hydra, it does the same thing, and dont use this for illegal purposes

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Nah, that's for something completely different. THC Hydra is for bruteforcing http telnet pop3 etc. Aircrack is specifically made to parse pcap files with encrypted 802.11b/g frames and uses completely different methods to do the bruteforcing. These 2 programs are similar, but cannot perform the same task.